Compa Sibiu, a producer of car parts, will this year invest more than 10 million euros in the technology it needs to develop production facilities for its traditional partners Honeywell, Bosch and Koyo.
According to company officials, Compa Sibiu will use both its own resources and bank loans to support the investment.
"The collaboration with Honeywell began two years ago, and is maturing at the this moment. For the US group we manufacture parts for turbo-blowers and have so far invested several million euros in retooling," Tiberiu Bucur, marketing and sales director with the company, told ZF Transilvania.
The company also reported 76.5% higher turnover for the first six months of the year compared with the same period last year, when turnover was 18 million euros. However, the company has seen a slight decrease in net income, which in late June was 1.2 million euros.
The company is now forecasting turnover in excess of 60 million euros by the end of 2005.
"The markets we are active on, both on the domestic market and internationally, have been seriously hit by significant negative factors, such as the euro exchange rate (domestically), the price of oil and the price of raw materials; however, in principle there is growth in demand on these markets, which is creating favourable premises for development in this domain," explained Bucur.
He went on to say that for the first six months of this year Compa Sibiu had acquired raw materials worth 13.5 million euros, 95% more than for the corresponding period last year. The Sibiu-based company ended 2004 with total sales of around 41 million euros, with net income standing at 1.6 million euros.
The last two years have seen the company seal several partnerships for the production of car sub-assemblies with international companies from the industry, such as US group Honeywell Garrett and Koyo of Japan. Compa has invested several million euros in these projects.
The company also has a collaboration contract with German group Bosch.
Garrett-branded turbo-blowers cover 48% of the global market and equip the engines of various car brands, including Alfa Romeo, Audi, BMW, Citroen, Fiat, Lancia, DaimlerChrysler, Nissan, Opel, Peugeot, Renault, Saab, Seat and Volkswagen.
Compa is currently controlled by its employees, who own 51.1% of the company shares. The company''s shareholding structure was joined by a series of investment funds in recent years, such as Hyposwiss Danube Tiger (9.9%) and New Century Holdings'' Broadhurst and Lindsell (7.2% together).
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